C is corrent. A corporation is not allowed to deduct a net capital loss in computing its taxable income. Instead, a net capital loss is generally carried back 3 years and forward 5 years as a short-term capital loss to offset capital gains in the carryback and carryforward years. A is incorrect. A corporation cannot deduct a net capital loss. A is incorrect. A corporation cannot deduct a net capital loss. D is incorrect. A corporation cannot deduct a net capital loss.
